Case Studies of Management Sciences

LPP formulation

1. The SS Glass Co. produces high quality glass products, including windows and glass doors. It
has three plants. Aluminium frames and hardware are made in Plant 1, wood frames are
made in Plant 2 and Plant 3 produces the glass and assembles the products.
Because of declining earnings, top management has decided to revamp the company’s product line.
Unprofitable products are being discontinued, releasing production capacity to launch two new
products having large scale potentials:
Product 1: An 8-foot glass door with aluminium framing
Product 2: A 4X6 foot double-hung wood-framed window
Product 1 requires some of the production capacity in Plants 1 and 3, but none in Plant 2. Product 2
needs only Plant 2 and 3. The marketing division has concluded that the company could sell as much
of either product as could be produced by these plants. However, because both products would be
competing for the same production capacity in Plant 3, it is not clear which mix of the two products
would be most profitable. Therefore, an OR team has been formed to study this question.
The OR team began by having discussions with upper management to identify management’s
objectives for the study. These discussions led to developing the following definition of the problem:
Determine what the production rates should be for the two products in order to maximize their total
profit, subject to the restrictions imposed by the limited production capacities available in three
plants. (Each product will be produced in batches of 20, so the production rate is defined as the
number of batches produced per week). Any combination of production rates that satisfies these
restrictions is permitted, including producing none of one product and as much as possible of the
other.
The OR team also identified the data that needed to be gathered.
1. Number of hours of production time available per week in each plant for these new
products. (Most of the time in these plants already is committed to current products, so the
available capacity for the new product is quite limited).
2. Number of hours of production time used in each plant for each batch produced of each
new product.
3. Profit per batch produced of each new product. (Profit per batch produced was chosen as an
appropriate measure after the team concluded that the incremental profit from each
additional batch produced would be roughly constant regardless of the total number of
batches produced. Because no substantial costs will be incurred to initiate the production
and marketing of these new products, the total profit from each one is approximately this
profit per batch produced times the number of batches produced.)
Obtaining reasonable estimates of these quantities required enlisting the help of key personnel in
various units of the company. Staff in the manufacturing division provided the data in the first
category above. Developing estimates for the second category of the data required some analysis by
the manufacturing engineers involved in designing the production processes for the new products.
By analysing cost data from these same engineers and marketing division, along with a pricing
decision from the marketing division, the accounting department developed estimates for the third
category.
The OR team immediately recognized that this is Linear Programming Problem of the classic Product
mix type. The following table provides the gathered data:
 Plant Production Time per Batch, (In Hr) Production Time Available
Product 1 Product 2 per Week (In Hr)
1 1 0 4
2 0 2 12
3 3 2 18
Profit per Batch Rs 3000 Rs 5000
Therefore, formulate the corresponding mathematical model.
Ans: Max Profit Rs 36000, Door batches = 2, Window batches = 6.

2. Ms X has just been diagnosed as having a cancer at a fairly advanced stage. Specifically, she
has a large malignant tumor in the bladder area (a “whole bladder lesson”). Ms X has to
receive the most advanced medical care available to give her every possible chance for
survival. This care will include extensive radiation therapy.
Radiation therapy involves using an external beam treatment machine to pass ionizing
radiation through the patient’s body, damaging both cancerous and healthy tissues.
Normally, several beams are precisely administered from different angles in a two
dimensional plane. Due to attenuation, each beam delivers more radiation to the tissue near
the entry point than the tissue near the exit point. Scatter also causes some delivery of
radiation to tissue outside the direct path of the beam. Because tumor cells are typically
microscopically interspersed among healthy cells, the radiation dosage throughout the
tumor region must be large enough to kill the malignant cells, which are slightly more radio
sensitive, yet small enough to spare the healthy cells. At the same time, the aggregate dose
to critical tissues must not exceed established tolerance levels, in order to prevent
complications that can be more serious than the disease itself. For the same reason, the
total dose to the entire healthy anatomy must be minimized.
Because of the need to carefully balance all these factors, the design of radiation therapy is a
very delicate process. The goal of the design is to select the combination of beams to be
used and the intensity of each one to generate the best possible dose distribution. (The dose
strength at any point in the body is measured in kilorads unit.) Once the treatment design
has been developed, it is administered in many instalments, spread over several weeks.
For any proposed beam of given intensity, the analysis of what the resulting radiation
absorption by various parts of the body would be requires a complicated process. In brief,
based on careful anatomical analysis, the energy distribution within the two dimensional
cross section of the tissue can be plotted on an isodose map, where the contour lines
represent the dose strength as a percentage of the dose strength at the entry point. A fine
grid then is placed over the isodose map. By summing the radiation absorbed in the squares
containing each type of tissue, the average dose that is absorbed by the tumor, healthy
anatomy and critical tissues can be calculated. With more than one beam (administered
sequentially) the radiation absorption is additive.
After through analysis of this type, the medical team has carefully estimated the data
needed to design Ms X’s treatment as summarized in table given below. The first column
lists the areas of the body that must be considered and then the next two columns give the
fraction of the radiation dose at the entry point for each beam that is absorbed by the
respective areas on average. For example, if the dose level at the entry point for beam 1 is 1
 kilorad, then an average of 0.4 kilorad will be absorbed by the entire healthy anatomy in the
two-dimensional plane, an average of 0.3 kilorad will be absorbed by nearly critical tissues,
an average of 0.5 kilorad will be absorbed by the various parts of the tumor, and 0.6 kilorad
will be absorbed by the centre of the tumor. The last column gives the restrictions on the
total dosage from both beams that is absorbed on average by the respective area of the
body. In particular, the average dosage absorption for the healthy anatomy must be as small
as possible, the critical tissues must not exceed 2.7 kilorads, the average over the entire
tumor must equal 6 kilorads and the centre of the tumor must be at least 6 kilorads.
Data for the design of Ms X’s radiation therapy:
Area Fraction of Entry Dose Absorbed by Area Restriction on Total
(Average) Average Dosage,
Beam 1 Beam 2 Kilorads
Healthy Anatomy 0.4 0.5 Minmize
Critical Tissues 0.3 0.1 <= 2.7
Tumor Region 0.5 0.5 =6
Centre of Tumor 0.6 0.4 >=6
Formulate a Linear Programming Problem to decide the dose of Beam 1 and Beam 2.

3. You are assigned to plan agricultural production for the coming year in three Districts of your
state. The agricultural output of each district is limited by both the amount of available
irrigable land and the quantity of water allocated for irrigation by the water commissioner.
The data are given in the following table 1.
The crops suited for this region include Paddy, Potato and Cucumber and these are the three
being considered for the upcoming season. These crops differ primarily in their expected net
return per acre and their consumption of water. In addition, the Govt has set a maximum
quota for the total acreage that can be devoted to each of these crops. Because of the
limited water available for irrigation, the state will not be able to use all its irrigable lad for
planting crops in the upcoming season.
Table 1:
Districts Usable land (Acre) Water Allocation (Acre Feet)
1 400 600
2 600 800
3 300 375
Table 2:
Crop Maximum Quota Water Consumption Net Return
(Acres) (Acre Feet / Acre) (‘000 Rs/ Acre)
Paddy 600 3 1000
Potato 500 2 750
Cucumber 325 1 250
To ensure equity between the three districts, it has been agreed that every district will plant
the same proportion of its available irrigable land. For example, if District 1 plants 200 of its
available 400 acres, then District 2 must plant 300 of its 600 acres, while District 3 plants
150 acre of its 300 acre. However any combination of the crops may be given at any of the
districts. So now Formulate the Linear Programming Problem to plan how many acres to
devote to each crop at the respective district while satisfying the given restrictions. The
objective is to maximize the total net return to the state as a whole.
4. The Swasti Steel, one of the major steel producers in the world, is located in the city of
Steeltown and is the only large employer there. Steeltown has grown and prospered along
with the company, which now employs nearly 50000 residents. Therefore, the attitude of
the town’s people always has been, what’s good for Swasti Steel is good for the town.
However, this attitude is now changing; uncontrolled air pollution from the company’s
furnace is ruining the appearance of the town and endangering the health of its residents. A
recent stakeholders’ revolt resulted in the election of a new enlightened board directors for
the company. These directors are determined to follow socially responsible policies, and
they have been discussing with Steeltown officials and citizens’ group what to do about the
air pollution problem. Together they have worked out stringent air quality standards for the
steeltown airshed.
The three main types of pollutants in this airshed are particulate matter, sulphur oxide, and
hydrocarbons. The new standard require that the company reduce its annual emission of
these pollutants by the amounts shown in table 1. The board directors has instructed
management to have the engineering staff determine how to achieve these reduction in the
most economical way.
Table 1: Clean air standards for Swasti Steel
Pollutants Required Reduction in Annual Emission rate (metric ton)
Particulates 60
Sulphur oxide 150
Hydrocarbons 125
The steel town has two primary sources of pollution, namely, the blast furnaces for making
pug iron and the open-hearth furnaces for changing iron into steel. In both cases the
engineers have decided that the most of effective types of abatement methods are (1)
increasing the height of the smokestacks, (2) using filter devices (including gas traps) in the
smokestacks and (3) including cleaner, high grade materials among the fuels for the
furnaces. Each of these methods has a technological limit on how heavily it can be used (e.g.,
a maximum feasible increase in the height of the smokestacks) but there is also considerable
flexibility for using the method at a fraction of its technological limit. Table 2 shows how
much emission (in metric ton per year) can be eliminated from each type of furnace by fully
using any abatement method to its technological limit. For purposes of analysis, it is
assumed that each method also can be used less fully to achieve any fraction of the emission
rate reductions shown in the table.
Table 2: Reduction in emission rate (in metric ton per year) from the maximum feasible use
of an abatement method for Swasti Steel.
Pollutant Taller smokestacks Filters Better Fuels
Blast Open- Blast Open- Blast Open-Hearth
Furnaces Hearth Furnaces Hearth Furnaces Furnaces
Furnaces Furnaces
Particulates 12 9 25 20 17 13
Sulphur oxide 35 42 18 31 56 49
Hydrocarbons 37 53 28 24 29 20

Furthermore, the fraction can be different for blast furnaces and for open-hearth furnaces.
For either type of furnace, the emission reduction achieved by each method is not
 substantially affected by whether the other methods also are used. After these data were
developed, it became clear that no single method by itself could achieve all the required
reductions. On the other hand, combining all three methods at full capacity on both types of
furnaces 9which would be prohibitively expensive if the company’s products are to remain
competitively priced) is much more than adequate. Therefore the engineers concluded that
they would have to use some combination of the methods, perhaps with fractional
capacities, based upon the relative costs. Furthermore, because of the differences between
the blast and the open-hearth furnaces, the two types probably should not use the same
combination.
An analysis was conducted to estimate the total annual cost that would be incurred by each
abatement method. A method’s annual cost includes increased operating and maintenance
expenses as well as reduced revenue due to any loss in the efficiency of the production
process caused by using the method. The other major cost is the start-up cost (the initial
capital outlay) required to install the method. To make this one-time cost commensurable
with the ongoing annual costs, the time value of money was used to calculate the annual
expenditure (over the expected life of the method) that would be equivalent in value to this
start-up cost.
The analysis led to the total annual cost estimates (in Lakh of Rs) given in table 3 for using
the methods at their full abatement capacities. It also was determined that the cost of a
method being used at a lower level is roughly proportional to the fraction of the abatement
capacity given in table 2 that is achieved. Thus for any given fraction achieved, the total
annual cost would be roughly that fraction of the corresponding quantity in table 3.
Table 3: Total Annual cost from the maximum feasible use of an abatement method for
Swasti Steel (in Lakh Rs)

Abatement Method Blast Furnaces Open-Hearth Furnaces

Taller Smokestacks 8 10
Filters 7 6
Better Fuels 11 9

The stage now was set to develop the general framework for the company’s plan for
pollution abatement. This plan specifies which types of abatement methods will be used and
at what fractions of their abatement capacities for (1) the blast furnaces and (2) the open-
hearth furnaces. Because of the combinatorial nature of the problem of finding a plan that
satisfies the requirements with the smallest possible cost, an OR team was formed to solve
the problem. Please formulate the problem as a member of the team.

5. The SS Company operates a reclamation centre that collects four types of solid waste
materials and treats them so that they can be amalgamated into a saleable product.
(Treating and amalgamating are separate process). Three different grades of this product
 can be made depending upon the mix of materials used. Although there is some flexibility in
the mix for each grade, quality standards may specify the minimum or maximum amount
allowed for the proportion of a material in the product grade. (This proportion is the weight
of the material expressed as a percentage of the total weight for the product grade.) For
each of the two higher grades, a fixed percentage is specified for one of the materials. These
specifications are given in following table along with the cost of amalgamation and the
selling price of each grade.
Table 1: Product data for SS Company
Grade Specification Amalgamation Selling Price
cost per kg (Rs) per kg (Rs)
A Material 1: Not More than 30% of total 3.00 8.50
Material 2: Not less than 40% of total
Material 3: Not More than 50% of total
Material 4: Exactly 20% of total
B Material 1: Not More than 50% of total 2.50 7.00
Material 2: Not less than 10% of total
Material 4: Exactly 10% of total
C Material 1: Not More than 70% of total 2.00 5.50

Table 2: Solid Waste materials data for the SS Company.

Material Kg per week Treatment cost Additional Restrictions
available per kg (Rs)
1 3000 3.00 1. For each material, at least half of the kg per
2 2000 6.00 week available should be collected and
3 4000 4.00 treated.
4 1000 5.00 2. Rs 30000 per week should be used to treat
these materials.

The reclamation centre collects its solid waste materials from regular sources and so is normally
able to maintain a steady rate for treating them. The following table gives the quantities
available for collection and treatment each week, as well as the cost of treatment for each type
of material. The SS company is solely owned by Green Earth, an organization devoted to dealing
with environmental issues, so SS profits are used to help support Green Earth’s activities. Green
Earth has raised contributions and grants amounting to Rs 30000 per week, to be used
exclusively to cover the entire treatment cost for the solid waste materials. The board of
directors of Green Earth has instructed the management of SS to divide this money among the
materials in such a way that at least half of the amount available of each material is actually
collected and treated. These additional restrictions are listed in table 2.
Within the restrictions specified in table 1 and 2, management wants to determine the amount
of each product grade to produce and the exact mix of materials to be used for each grade. The
objective is to maximize the net weekly profit (total sales income minus total amalgamation
cost), exclusive of the fixed treatment cost of Rs 30000 per week that is being covered by gifts
and grants.

6. The director of Passenger Services of SS Air lines was trying to decide how many new
stewardesses to hire and train over the next six months. He had before him the
requirements in number of stewardess flight hours needed.
Month Jan Feb Mar Apr May June
Hours needed 8000 7000 8000 10000 9000 12000
It took one month to train stewardess before she was able to be used on regular flights.
Hence hiring had to be done a month before the needed arose. Secondly training of new
stewardess required the time of already trained stewardesses. It took approximately 100
hours of regular stewardess time for each trainee during the month training period. In each
words, the number of hours available for flight service by regular stewardesses was cut by
100 hours for each trainee.
The Director of Passenger Services was not worried about January since he had 60
stewardesses available. Company rules required that a stewardess could not work more
than 150 hours in any month. This meant that he had a maximum of 9000 hours available for
January. One thousand in excess of his need, (stewardesses were not laid off in such cases –
each merely worked fewer hours).
Company record showed that 10 percent of stewardesses quit their jobs each month to be
married or for other reasons.
The cost of SS Air lines for a regular stewardess was Rs 80,000 per month for salary and
fringe benefits, regardless of how many hours she worked. (She of course could not work
more than 150 hours.) the cost of a trainee was Rs 40,000 per month for salary and fringe
benefits.
Formulate the above as a Linear Programming designed to solve the problem of the Director
of Passenger Services at minimum cost, be sure to identify all the symbols that you use and
explain (briefly) all equations.